MORGAN STANLEY SEES CLOUD SPENDING SURGING TO $1.2T Morgan Stanley expects global cloud capital spending to reach $1.2 trillion in 2027, up 30% YoY and $170 billion above pre-Q2 estimates. The firm said all four major U.S. hyperscalers remain capacity constrained as AI demand continues to outpace supply. Alphabet (GOOGL), Amazon (AMZN) and Meta (META) all raised 2026 capex guidance, while Microsoft (MSFT) maintained its spending outlook. Morgan Stanley believes consensus is still too conservative, forecasting cloud capex could reach $1.4 trillion, driven by strong AI adoption, rising cloud demand, multi-year customer commitments and improving returns on infrastructure investment.(*Walter Bloomberg)